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To: Zeneta

Only if you sell it. If you planned to hold it anyway, it’s just on paper. But in the meantime it’s still paying you dividends. You still own an asset that’s putting money into your pocket, which is the only real definition of an asset anyway. As for stocks that don’t pay dividends, to me that’s gambling, not investing.


28 posted on 08/27/2015 5:03:01 PM PDT by Hugin ("First thing--get yourself a firearm!" Sheriff Ed Galt)
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To: Hugin

You seem to be well meaning but actually have absolutely no clue.

Try to get a loan on your “Stock” you bought at $100 that is now trading at $5.

Dividends?

Do you have any fundamental understanding of the difference between Debt and Equity?


30 posted on 08/27/2015 5:15:16 PM PDT by Zeneta (Thoughts in time and out of season.)
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To: Hugin

I have been in and out of Linn Energy (LINE) for quite a while now. Good example. The stock crashed along with all the rest of the MLPs but it is still paying dividends of $.10 per share, per MONTH. This may not continue for long, but at the current price that amounts to a 62% annual dividend. While the best you can do on most investments is 5% a year, LINE is paying 5% per month.

I am not suggesting that you run out an buy it, but at these prices I can afford to gamble on it. Of course you have to keep a close eye on it and be ready to get out if and when they actually suspend dividend payments and the stock collapses completely.

My investment strategery saw me through 2008 and it is working just fine now: Buy only top quality companies on the dips, be ready to sell on the bounce and, nowadays with a major crash imminent, hedge with inverse ETFs like DOG, DXD, SH and SDS which have given me a nice return well north of 10% over the past two weeks.


41 posted on 08/28/2015 10:38:01 AM PDT by Chuckster ("Them Rag Heads just ain't rational" Curly Bartley 1973)
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